BCEA Earnings Threshold 2026
The Basic Conditions of Employment Act (BCEA) establishes minimum employment conditions for South African workplaces, including provisions relating to working hours, overtime, rest periods and remuneration.
The BCEA earnings threshold determines whether certain employees are excluded from specific working-time protections under the Act. It is important for employers to understand the threshold because it can affect payroll calculations, employment contracts, working arrangements and HR policies.
Effective 1 May 2026, the Department of Employment and Labour announced a new annual earnings threshold of R269,900.90. This replaced the previous threshold of R261,748.45.
For businesses, the change means that some employees who previously earned above the threshold may now fall below it, depending on their qualifying earnings. Employers should review their payroll and employment arrangements to determine whether adjustments are necessary.
The official announcement is available from the Department of Employment and Labour.
What Does the 2026 Earnings Threshold Mean?
The threshold is not a minimum salary that employers must pay. Instead, it is used to determine the application of specified statutory provisions to employees based on their qualifying earnings.
Employees earning above the threshold are excluded from certain BCEA provisions dealing with ordinary working hours, overtime, compressed working weeks, averaging of working hours, meal intervals, daily and weekly rest periods, Sunday work, specified night-work provisions and certain public-holiday payments.
However, earning above the threshold does not mean an employee loses all protection under South African labour law. Other statutory rights and obligations continue to apply, and contractual terms may provide additional benefits.
Employers should also be aware that the earnings threshold affects certain provisions of other legislation, including aspects of the Labour Relations Act and Employment Equity Act.
How Is the Earnings Threshold Calculated?
For the purposes of the threshold, earnings generally refer to regular annual remuneration before deductions such as income tax, pension contributions and medical aid payments.
However, certain amounts are excluded from the calculation, including employer contributions, subsistence and transport allowances received, achievement awards and payments for overtime worked, as specified in the applicable determination.
This means employers should not automatically use an employee’s total cost to company or take-home salary to determine whether the threshold applies.
For example, an employee’s package may include employer retirement-fund contributions or allowances that need to be treated correctly when calculating qualifying earnings.
Businesses should review the applicable determination and seek professional advice where remuneration structures are complex.
Which Employees May Be Affected by the 2026 Change?
The increase may affect employees whose qualifying annual earnings fall between the previous threshold of R261,748.45 and the new threshold of R269,900.90.
An employee in this range who was previously above the threshold may now fall below it, potentially bringing them within the scope of the specified BCEA working-time provisions.
Consider a business employing staff on salaries close to the threshold. If an employee’s qualifying earnings fall below the new limit, the employer may need to reassess overtime arrangements, working hours and related payroll practices.
The change does not automatically mean every employee must receive a salary increase. Rather, the employer must determine how the revised threshold affects the employee’s legal entitlements.
What Employers Should Review
1. Payroll and Remuneration Records
Review employee remuneration to identify those who may be affected by the new threshold. Confirm that the calculation uses the correct definition of earnings rather than relying solely on gross package figures or take-home pay.
Payroll teams should update relevant records and ensure that overtime and other payments are calculated correctly for employees who fall within the applicable statutory protections.
2. Working Hours and Overtime Policies
Employers should assess whether their existing policies reflect the requirements that apply to employees below the threshold.
This includes reviewing ordinary working hours, overtime arrangements, meal intervals, daily and weekly rest periods, Sunday work and applicable night-work or public-holiday provisions.
Where an employee becomes covered by a relevant provision, employers should ensure that working arrangements and remuneration comply with the applicable legal requirements.
3. Employment Contracts
Employment contracts should clearly explain working hours, overtime arrangements and other relevant conditions.
If an employee’s legal entitlements change because of the revised threshold, employers should review the applicable contractual terms and workplace practices. Any necessary changes should be handled lawfully and communicated clearly.
White Hall Trading provides HR consulting services that can help businesses review employment practices, strengthen workplace policies and align people-management processes with business requirements.
4. HR Policies and Manager Training
Managers should understand which working-time rules apply to the employees they supervise. Outdated policies or inconsistent practices can create confusion and increase the risk of disputes.
Review internal procedures and provide guidance to managers and payroll teams so that changes are implemented consistently.
Businesses should also ensure that employees understand their working hours, overtime arrangements and relevant employment conditions.
Why BCEA Compliance Matters
Failing to apply the earnings threshold correctly can expose a business to disputes about unpaid overtime, working hours and other employment conditions.
Compliance also helps employers maintain accurate payroll records, communicate expectations clearly and establish consistent workplace practices.
The threshold should not be considered in isolation. Employers should review the BCEA alongside applicable collective agreements, sector-specific requirements, employment contracts and other relevant labour legislation.
For businesses without a dedicated HR department, professional guidance can help identify potential compliance gaps before they become more serious problems.
White Hall Trading supports organisations with HR and employee relations solutions designed to strengthen workplace processes and support effective people management.
Frequently Asked Questions
What is the BCEA earnings threshold for 2026?
The new threshold announced by the Department of Employment and Labour is R269,900.90 per year, effective from 1 May 2026.
Does the earnings threshold determine the minimum salary an employer must pay?
No. It determines whether specified statutory provisions apply to certain employees. It is not the national minimum wage or a general minimum salary requirement.
Are employees earning above the threshold exempt from all labour laws?
No. Employees above the threshold remain protected by other applicable labour legislation. The exclusion applies only to specified provisions, and employment contracts may provide additional benefits.
Does the threshold affect overtime pay?
Yes. Employees earning above the threshold are excluded from the BCEA provision governing overtime in section 10. Employees below the threshold are generally covered by the relevant statutory provisions, subject to applicable rules and exceptions.
What should employers do after the 2026 threshold change?
Employers should review qualifying earnings, payroll systems, overtime arrangements, employment contracts and HR policies to determine whether changes are required.
Strengthen Your HR Compliance With White Hall Trading
The 2026 BCEA earnings threshold is an important consideration for South African employers. Understanding how it applies can help businesses maintain compliant working arrangements, manage payroll accurately and reduce the risk of employment disputes.
By reviewing employee earnings and updating relevant procedures, employers can respond to the change with greater confidence.
Ready to strengthen your HR compliance and employment practices?
White Hall Trading provides practical HR consulting and employee relations support to help South African businesses manage employment obligations and build effective workplace processes.
